Micron misses by .09 to .10:
Micron Technology misses estimates
Chip producer cites pricing strains, droopy sales
By Janet Haney, CBS MarketWatch
Last Update: 5:52 PM ET Jun 23, 1999 Tech Report
BOISE, Idaho (CBS.MW) -- Micron Technology missed analysts' third-quarter estimates as pricing pressure in the computer memory chip market and a 13 percent drop in PC system sales led to a loss in the quarter.
Boise, Idaho-based Micron (MU: news, msgs) reported net loss of $27.7 million, or 10 cents per share, compared with a loss of $109.4 million, or 51 cents in the year-ago third quarter.
Analysts surveyed by First Call Corp. expected the company to break even.Revenue for the period was $863.8 million, vs. $612.7 million in the year-earlier quarter.
Ahead of the news, shares of Micron, the number two maker of semiconductor memory components, dropped 1 5/16 to 43 15/16. Samsung leads the way as the top memory maker.
The company said in a statement that its gross margin on semiconductor operations fell due to a 27 percent decrease in the pricing on one of its key DRAM chips. The fall in unit sales of Micron's PC systems came as a result of weakness in consumer sales.
Additionally, Micron said its radio frequency identification subsidiary Micron Communications, will "cease operations in the fourth fiscal quarter resulting in a consolidated pre-tax charge of $9 million to $12 million."
On Monday Micron's subsidiary, Micron Electronics (MUEI: news, msgs), reported third-quarter earnings 1 cent above Wall Street expectations. See full story. Its shares gained 1/4 to close at 10 3/4. |
